The company has a 30 tax rate a 15 discount rate and uses


FFF is planning on buying a new industrial sander costing $90,000. The saner has projected maintenance costs of $20,000 annually over the three-year life of the sander. At the end of three years, the sander will be worthless and will be scrapped. The company has a 30% tax rate, a 15% discount rate, and uses straight-line depreciation over the life of a project. What is the equivalent annuity (cost)?

a) $-11,416
b) $-44,418
c) $-50,000
d) $-101,416
e) none of the above

Solution Preview :

Prepared by a verified Expert
Finance Basics: The company has a 30 tax rate a 15 discount rate and uses
Reference No:- TGS02268513

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)